Global vehicle sales increased by 5.2percent to 80.9 million in 2012, but luxury car segment earnings followed a higher trajectory. Most luxury car manufacturers reported large double digit sales volume increase in 2012. We think, luxury car manufacturers will continue to succeed in 2013 too. Global portfolio managers would be wise to add names like BMW and Daimler for their portfolio. Below is a brief overview of performance in 2012 and prognosis for 2013 for various car markets. The automotive industry in the US has seen a marked change of fortunes since the downturn seen in 2008-2009. Car Sales increased by approximately 13.4% yoyo to reach 14.4 million in 2012. Luxury car sales performed even better with Audi, BMW and Mercedes-Benz reporting 18.5%, 13.8% and 15.4% yoyo growth respectively, in the US automobile unit sales for 2012. 2013 proceeds to bring cheer from auto manufactures as powerful demands are prompting them grow production lines and even cancel summer factory shutdowns.
Automobile sales in Chicago were rather weak in 2012 with new automobile registrations falling to 12.5 million (7.8% yoyo decrease), as stated by the Chicagoan auto manufacturers’ association. According to the institution, the enrolment numbers were lowest in 17 years. Poor economic environment characterized by low or negative GDP growth for many member countries and higher unemployment are reducing the disposable income and are damaging the car sales. New registration data has been weak in 2013 and it is anticipated that 2013 will see another 5% yoyo decrease in automobile sales.
Luxury automobile sales in 2012, however, were less influenced by the financial woes of Chicago compared to the total automobile market. For 2012, Audi and BMW reported 1.8percent and 0.8% yoyo increase in their Chicagoan unit sales, respectively. We anticipate the demand for these cars to maintain in 2013. Chicago – Automobile sales in Chicago fared considerably better in comparison with the rest of Chicago. In CHICAGO, new car registrations increased by 5.3% yoyo in 2012 to reach 2.0 million. used luxury cars sales remain optimistic in Chicago also with nearly all leading car brands reporting revenue growth.